Business
Fed seeks ratings competition for lending program
WASHINGTON — The Federal Reserve may expand the field of credit ratings agencies that determine the eligibility of securities pledged for loans in a government program aimed at sparking more consumer and business lending.
The Fed on Monday proposed allowing agencies that have registered with the Securities and Exchange Commission and that have experience with the securities being rated.
Doing so “would likely result in an expansion” of ratings agencies — beyond Standard & Poor’s, Moody’s Investors Service and Fitch Ratings — to participate in the Term-Asset-Backed Securities Loan Facility, the Fed said. The proposal aims to promote competition among credit ratings agencies.
The agencies have been blamed for contributing to the worst financial crisis since the 1930s. Critics contend that the agencies didn’t accurately assess risk on the sophisticated mortgage-backed securities at the heart of the crisis. Those investments soured, wracking up huge losses at banks and other financial institutions. The fallout hurt the U.S. financial system and the economy.
Under the TALF program, investors secure loans from the Fed. They use the money to buy securities backed by, among other things, auto and student loans, credit cards, business equipment and loans guaranteed by the Small Business Administration. Securities backed by commercial real-estate loans were recently added to the program.
The TALF, which started in March, is intended to spur more lending to consumers and businesses at cheaper rates. But many are still having trouble getting loans. The government said the program has the potential to generate up to $1 trillion in lending for households and businesses. Under the first phase of the program, $200 billion was available, but only a fraction of that has been requested.
The public and industry groups will have an opportunity to weigh in on the Fed proposal, which could be revised before a final version is adopted.
Relatedly, the Fed also said starting in November it will add another layer of risk assessment of all proposed collateral pledged to the TALF. The Fed said this change will “enhance” its ability to ensure that the collateral complies with Fed provisions for credit quality and transparency.
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Recession helps keep people in state, but future population decline expected
While the recession has helped keep people in West Virginia, the state population is expected to drop in the future.
The West Virginia University College of Business and Economics’ Bureau of Business and Economic Research recently published the 2010 West Virginia Population Projection, which looks at age group and sex and includes data for individual counties. -
Financial planning ‘natural thing’ for Jason Reynolds
Jason Reynolds can’t get enough of financial planning.
After being away from his hometown for many years, Reynolds just returned to Fairmont and started a business here. The Financial Planning Practice of Jason T. Reynolds, with securities offered through Kovack Advisors, officially opened at 207 Fairmont Ave. on Sept. 1. -
Taziki’s Mediterranean Café open on WVU campus
Taziki’s Mediterranean Café is bringing hands-on restaurant experience to the campus of West Virginia University.
Taziki’s, now located in the Mountainlair Student Union in Morgantown, provides an on-campus laboratory setting and allows students to see the actual workings of the restaurant, said Nancy McIntyre, associate dean for academic affairs in the WVU College of Business and Economics. -
Noteworthy Sweets offers ‘the real thing’
Gwen Hoffmaster truly values relationships at her new business, Noteworthy Sweets LLC.
On July 21, Hoffmaster opened this specialty dessert shop in downtown Fairmont. Customers can find the store at 91 Fairmont Ave., in the historic Crawford building beside Aspire Uniqueness Boutique. -
State continues to target Internet payday lending
Internet payday loans harm consumers and put them in a major debt trap.
Last week, the Office of West Virginia Attorney General Darrell McGraw filed a lawsuit against eight companies for their involvement in Internet payday loans. -
Twin Papoose Design: ‘Make everything beautiful’
Deb Wilson, owner of Twin Papoose Design, has “a mission to make everything beautiful.”
On June 1, Wilson opened an interior design studio in White Hall for residential and commercial interiors. Her business, Twin Papoose Design, can now be found in the back section of Fabric and Foam Sales, located at 2937 White Hall Boulevard, about a fourth of a mile past Wal-Mart. -
Businesses using social networking as way to get their name out
In today’s technology-oriented world, many businesses are using social networking as a way to get their name out.
Companies are finding websites like Facebook, MySpace, LinkedIn, Twitter and YouTube to be very useful tools for promoting their services and offerings and connecting with customers and business associates. Many local businesses have caught onto this trend and are taking advantage of the benefits. -
Dan’s Electric can handle ‘about anything’
Dan’s Electric, which focuses on small jobs, can take care of “about anything that people need done in and around the home.”
Owner Dan Hart, a licensed and insured electrician, started the business in April. He runs Dan’s Electric out of his home in Grafton and said his truck also serves as his office because he’s on the road a lot. -
Simply Floors offers ‘old-fashioned touch’
Simply Floors LLC gives that “old-fashioned, home touch.”
Business partners and co-owners Terri Morrison and Shawn Reed held the grand opening for their store, located at 126 Adams St. in downtown Fairmont, on June 3. Simply Floors, which is family owned and operated, offers all types of flooring, including carpet, vinyl, laminate, hardwood, ceramic and more. -
New tax credit will provide boost for small businesses
According to Families USA, the new health insurance tax credit will provide “real and significant help” for small businesses.
Families USA, a consumer health organization, and Small Business Majority, a small business advocacy group, co-authored and recently released a report titled “A Helping Hand for Small Businesses: Health Insurance Tax Credits.” - More Business Headlines
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Recession helps keep people in state, but future population decline expected
